Forum Replies Created
I might missed something about depreciation.
The new house will be on depreciation schedule at 2.5% per year when built. How many I have to count?
suppose the old house in area 340K
my new house cost is 250K
the block of land is 150K
The above numbers are constants. using your formula I have the following:
250-(25 years x 2.5%)=93K
What does it mean in practical terms for me. Should I build that house on that land of 150K or need to look for different lot valued at 93K?
Regards
I have just received a phone call from my lender who has done a free home valuation for me. the value is now increased by almost 20%, and the chest is opening up wider now.
thanks
Thanks for this, will try and let you know about it.
Hello Hydra,
I actually chatted with the lender yesterday and what I'm hearing is that if I prepare my valuation the bank can take it but will send their own valuer regardless. So, they would most definetely rely on thier own report. However, the bank is reluctant to sent the one without me engaging first. They are happy with what thier system shows – final building cost.
I did not get the details of the panel valuers as yet, though I might not get it.
Cheers
Vitale
Thanks fellows for your valuable heads up. I like the idea of getting some more information from a lender (bank) about their valuers. I hope it would help.
Regarding the properties in my neighbourhood. I see many older houses on smaller blocks being sold at prices higher then our build costs. I think 15% increase from bank's value would be suitable. By the way a house when built has nothing around it e.g. fence, landscaping, pavements, garden… The value of the package has never been assessed in our case.
Will let you know what happened.
Thanks
